If you use a credit card to buy goods or services, then the transaction could be covered by Section 75 of the Consumer Credit Act. This means that your credit card provider and the retailer or supplier may be equally liable for compensating you if something goes wrong. You may be able to make a claim under Section 75 where:
- the cash price of the goods or services is over £100 but not more than £30,000 (the £100 minimum amount applies to each item or set of items that you buy rather than the total bill — so for example, if you bought two items that together cost more than £100, but each cost less than £100, Section 75 would not apply)
- all or part of the purchase was made using a credit card (even if it is just the deposit)
- there has been a breach or misrepresentation of your contract (i.e. where the goods or services were not as described, were faulty or were not received at all) or
- the retailer or supplier goes into administration before you've received your goods or services.
Unfortunately, Section 75 of the Consumer Credit Act was intended to apply to private individuals, sole traders and partnerships only. Claims made by companies and limited companies are not covered under Section 75 of the Act.
It’s important to note, firstly, that liability under Section 75 arises in certain circumstances. Secondly, charge cards are not classified as credit cards, and therefore, are not covered by the terms of Section 75.
